Castellum invests SEK 1.6 billion in Hagastaden, Stockholm, and sells for SEKm 280
Castellum AB (publ) is acquiring a large office-project property for approx. SEK 1.6 billion, via Fastighets AB Brostaden, a wholly owned subsidiary. The building is currently under construction in Hagastaden, an expansionary area of central Stockholm. The property is well situated in the area, and directly connected to the New Karolinska Hospital in Solna. At the same time an agreement has been signed with NCC AB, for the sale of the Yrket 4 office property in Solna.
The Torsplan 2 office project, being acquired by Brostaden, will cover approx. 23,000 flexible and adaptable square metres. 18,800 sq. m. become designated office space, and remaining areas will be utilized for retail/restaurants/gyms, as well as 164 parking spaces. The project is being carried out with the ambition to comply with BREEAM Outstanding – one of the highest environmental-certification levels in the world. The investment will total approx. SEK 1.6 billion, and the project is scheduled for completion in autumn, 2016. Castellum has unutilized long-term credit facilities of approx. SEK 5 billion, which will be utilized for the acquisition. The change of possession is scheduled for the first quarter of 2017.
Torsplan 2 is well-situated in Hagastaden, for both services and communications, featuring direct connections to public transit as well as Essingeleden. In addition, plans call for a subway stop slated for completion in 2020, with direct access to the building. Within the next ten-year period, Hagastaden is expected to house 50,000 workplaces.
Approximately 71% of the property’s area is currently leased, and tenants include the Stockholm County Health Care Area (SLSO). Average contract duration is 9.2 years, from the scheduled time of access. The deal is conditional upon a 75% occupancy rate when possession is scheduled to be taken. Fully-leased, rental income has been calculated to total SEKm 76, after deduction for discounts totaling approx.SEKm 3. NCC gives a 24-month rent guarantee for all leasable areas which remain vacant after the scheduled access date.
“Hagastaden is the strongest growth area in Stockholm and the acquisition of this well-situated property heralds a vigorous continuation of our portfolio development in Stockholm”, says Castellum AB CEO, Henrik Saxborn. “We’re continuing to concentrate on selected sub-markets, and we’d like to keep expanding on track with high quality real estate. During 2015, we’ve sold properties totaling one billion kronor, in addition to sold residential projects. And we’ve invested approx. 750 million kronor in properties such as Kungsholmen, and Marievik. The intention is to continue the reconstruction of the portfolio”.
As part of the same deal, Brostaden is selling the 11,000-square-metre Yrket 4 office property in Solna. The property has future office building rights of 35,000 – 40,000 sq. m., and the sale is conditional on a new zoning plan. The sale price is determined by building-rights volumes, and is currently estimated to SEKm 280 – which is in line with the latest valuation. The change of possession of Yrket 4 will take place when the new zoning plan has been passed, i.e., by 2019, at the earliest.
Rental income of Yrket 4 totals approx. SEKm 22, and the vacancy rate is 7%. The building currently accomodate approx. 40 tenants; the Feelgood Company Health Centre, Actic and Coresec Systems are among the largest. Average leasing contract duration is 1.5 years.
Castellum AB (publ) discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.
For further information, please contact
Henrik Saxborn, CEO, phone +46 31-60 74 50
Ulrika Danielsson, CFO, mobile +46 706-47 12 61
Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 41 billion, and comprises premises for office, retail, warehouse and industrial purposes with a total lettable area of approx 3.4 million sq.m. The real estate portfolio is owned and managed by six wholly owned subsidiaries with strong local roots in five growth regions: Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland.
Castellum sustainability performance has, during 2015, been awarded with two top distinctions. The World Green Building Council’s award Business Leadership in Sustainability and “Green Star 2015” by GRESB which means that Castellum is one of the highest ranking companies in the world in the real estate sector.
Castellum is listed on Nasdaq Stockholm AB Large Cap.
Castellum AB (publ), Box 2269, SE-403 14 Gothenburg | Org nr/Corp Id no SE 556475-5550 | Phone +46 31 60 74 00 Fax +46 31 13 17 55
